Netflix is raising its prices for its streaming service by an average of $2 a month, effective January 1st. The company says the increase is necessary to maintain its high-quality content and improve the experience for customers. Netflix has been increasing prices for its streaming service every year since it was founded in 1997. In 2016, it raised prices by an average of $2 per month. In 2015, it raised prices by an average of $1 per month. And in 2014, it raised prices by an average of $1.50 per month. The company says that the increase is necessary to maintain its high-quality content and improve the experience for customers. But some people are concerned about how this will affect low-income families who rely on Netflix for their entertainment needs. Netflix says that the increase will not affect your monthly bill and that you can continue to use your current subscription plan without any changes. But if you have a Netflix account with more than one subscription plan, you will need to switch plans so that each account has at least one new price hike each year.
Netflix is bumping the price of its plans by $1-$2. Starting with the Standard plan, it’s going from $14 to $15.50 per month. If you opt for the cheaper Basic plan, you’re looking at an increase from $9 to $10 per month. Finally, if you’re using the Premium plan, which includes 4K streaming, you’re going to have to pay $20 per month instead of $18.
In Canada, the Standard plan jumped to C$16.49 from C$14.99. The Premium plan went from C$20 to C$20.99, and the Basic plan’s price didn’t change.
For new subscribers, the price will go up immediately. However, suppose you’re an existing Netflix subscriber. In that case, the company says the price changes “will gradually take effect.” The company also says, “Current members will receive an email notification 30 days before their price changes, unless they change their plan.”
As far as why Netflix raised the price, the company spoke to Reuters about the price increase. A Netflix spokesperson said, “We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can pick a price that works for their budget.”
That’s hardly a reason that’ll satisfy most Netflix users. The company is saying that it needs to increase its prices to do what it’s already doing. It didn’t say it’s adding anything new, which is what users would probably like to hear to justify the price increase.
